January 21, 2022

Volume XII, Number 21

Advertisement
Advertisement

January 21, 2022

Subscribe to Latest Legal News and Analysis

January 20, 2022

Subscribe to Latest Legal News and Analysis

January 19, 2022

Subscribe to Latest Legal News and Analysis

January 18, 2022

Subscribe to Latest Legal News and Analysis

US District Court for the Southern District of Florida Upholds SEC’s Partial Win in Bank Fraud Suit

The US District Court for the Southern District of Florida recently refused to reconsider its earlier decision granting partial summary judgment in favor of the Securities and Exchange Commission in a securities fraud case against BankAtlantic Bancorp, Inc. The SEC alleged that BankAtlantic Bancorp, Inc., now known as BBX Capital Corporation (BBX or Bank), failed to disclose problems with its commercial real estate portfolio. After the court granted summary judgment in favor of the SEC on the issue of falsity, BBX moved for reconsideration.   

In finding that BBX had not met the high standard necessary for a motion to reconsider, the court noted that the Bank did not disclose—and in some cases affirmatively misrepresented—“the existing trend of crumbling creditworthiness evident in the entire Commercial Residential Portfolio.” The court rejected BBX’s argument that it made adequate disclosures, explaining that the Bank “cannot inoculate [itself] from liability by informing investors about potential problems that might arise based on what the market may do in the future … when, at the same time, they failed to disclose to investors current problematic trends [it] knew about.” 

The case is currently scheduled for trial in November.    

SEC v. BankAtlantic Bancorp,. Inc. et al., Case No. 12-cv-60082 (S.D. Fla. Jan. 30, 2014).

©2022 Katten Muchin Rosenman LLPNational Law Review, Volume IV, Number 39
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

About this Author

Tenley Mochizuki, Katten Muchin Law Firm, Litigation Lawyer
Associate

Tenley Mochizuki concentrates her practice in litigation and dispute resolution matters.

While attending law school, Tenley participated in the Advocacy for the Elderly Clinic and worked on the Virginia Environmental Law Journal. Before joining the firm, she worked in a medical office, a primate cognition laboratory and various nonprofit organizations.

212-940-8568
Advertisement
Advertisement
Advertisement